mochisuki2

Just a small anecdote about contracts. I / the small company I was at, we built a small game that got some traction. One of the biggest publishers signed to do worldwide marketing and distribution. We agreed to a X percent cut of SALES, with them contracted to spend a pretty sum on marketing.

Game did ok financially, but because we were receiving revenue split, we came our way ahead.

We earned more for two primary reasons. They spent a lot more on marketing than we could afford, which goosed global sales. So they made i want to say 3x in revenue what they spent in marketing. We got 1/3 of that. But their PROFIT after giving us 1/3 was thus just 2x ad spend. I guess that’s good? It felt to me like not the balance you want. Today I would think ideally you want very low percentage on marketing vs revenue.